HCMC – Vietnam plans to cut nearly 130,000 public sector jobs as part of a nationwide administrative restructuring drive.

The plan includes reducing the number of provinces and centrally-run cities to 34 and commune-level units to 3,321. This would eliminate 29 provincial-level and 6,714 commune-level administrative units.

Following the changes, the provincial-level public workforce will shrink by 18,449 positions to around 91,784. At the commune level, over 110,000 jobs will be cut, and more than 120,000 part-time roles will be discontinued.

At a Government meeting today, May 9, Prime Minister Pham Minh Chinh instructed relevant agencies to allocate sufficient funding for severance payments and early retirement packages. He called for early disbursement to avoid delays and disruptions.

All the 63 provinces and cities have completed public consultations, with nearly 96% of respondents supporting the proposals. Local legislatures at all levels have passed related resolutions with unanimous or near-unanimous approval.

The finalized proposals will be submitted to the National Assembly and its Standing Committee for review and approval.

The Government expects the restructuring to generate savings on salaries and administrative costs during the 2026–2030 period. Policies will also cover social insurance contributions for early retirees.

Chinh urged ministries and localities to prepare facilities, manage public assets, and reassign personnel to ensure smooth implementation. He also asked localities to set up public service centers that operate independently of administrative boundaries.

He emphasized the need to develop legal frameworks to support decentralization, enhance resource allocation, and improve policy enforcement and oversight.

The finalized proposals will be submitted to the National Assembly and its Standing Committee for review and approval.

The Government expects the restructuring to generate savings on salaries and administrative costs during the 2026–2030 period. Policies will also cover social insurance contributions for early retirees.

Chinh urged ministries and localities to prepare facilities, manage public assets, and reassign personnel to ensure smooth implementation. He also asked localities to set up public service centers that operate independently of administrative boundaries.

He emphasized the need to develop legal frameworks to support decentralization, enhance resource allocation, and improve policy enforcement and oversight.